The world’s largest asset management company challenges the U.S. Securities and Exchange Commission (SEC), claiming spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) are no different from futures ETFs. is chanting.
In a new filing, investment giant BlackRock, which manages more than $8 trillion in assets, revealed. To tell He argued that since regulators have already given the green light to futures ETFs, they should approve spot-market crypto ETFs.
“Given that the Commission has approved an ETF that provides exposure to ETH futures, which is itself priced based on the underlying spot ETH market, the sponsor (BlackRock) believes that the Commission , we believe that ETPs (exchange traded products) that provide exposure to ETH futures should also be approved for spot ETH like trusts.”
According to BlackRock, the SEC is abusing the Investment Company Act of 1940 by applying it to spot ETFs.
“The 1940 Act provides additional investor protections not required by the 1933 Act, but these protections do not protect against harm arising from the market for the underlying assets or assets held by the ETF (i.e. fraud or manipulation in the market). It is not intended to reduce the possibility of
In other words, the Sponsor does not believe that the application of the 1940 Act supports the Commission’s alleged justifications in rejecting other spot digital asset ETPs.
The 1940 Act explicitly enumerates the types of fraud it seeks to prevent and establishes certain limitations relating to accounting, borrowing, custody, fees, independent commissions, etc., among others.
Notably, none of these restrictions apply to the pricing of such assets, whether ETH futures or spot ETH, the underlying assets of an ETF, or the CME ETH futures or spot ETH markets. It does not address the market to which it is derived. ”
BlackRock concludes that the SEC’s distinction between futures and spot market ETFs is arbitrary.
“The Sponsor believes that the distinction between registering an ETH futures ETF under the 1940 Act and registering a spot ETH ETP under the 1933 Act is no different in the context of the ETH-based ETP proposal.”
Last week, BlackRock registered the iShares Ethereum Trust in Delaware, a move similar to the company’s registration of its Bitcoin trust.
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